DHL Vietnam delivery goes electric

HO CHI MINH City, Vietnam: July 17, 2017. DHL eCommerce has launched a nationwide domestic delivery operation including the use of electric motorbikes for last-mile delivery.

The company is offering nationwide coverage to SMEs with next-day delivery in Ho Chi Minh and Hanoi.

"Practical innovation lies at the core of our domestic delivery networks all around Southeast Asia, and Vietnam is no exception with its fleet of environmentally-friendly electric motorbikes already in action on the streets," said DHL eCommerce Vietnam managing director Thomas Harris.

Last year Vietnamese consumers spent US$1 billion on eCommerce transactions despite only 50 percent of the country's 93 million inhabitants being online, according to DHL eCommerce CEO Charles Brewer: "With spending expected to grow at around 23 percent per year between now and 2020, local eTailers need scalable, high-quality logistics solutions with nationwide coverage more than ever before."

However with only 15 percent of the country's eCommerce shoppers paying for purchases online, Harris said providing a Cash-On-Delivery solution was a prerequisite to success: "Which is why we've tailored our nationwide network to seamlessly handle cash payments with next-day cash remittance and returns to take the burden off local eTailers so they can fully focus on growth and customer experience," he explained.

Using electric motorbikes in Vietnam is part of Deutsche Post DHL's commitment to zero emissions from its logistics operations by 2050.

In April this year the company announced it was expanding production of its StreetScooter electric van from 10,000 to 20,000 units based on its own requirement for 5,000 by the end of this year as well as from third-parties.

Founded in 2009 by a consortium of 80 German automotive companies, StreetScooter was acquired by the logistics giant in December 2014.

The Vietnamese government has set a target for six million "eco-friendly" vehicles to be in use throughout Vietnam by 2020, including 20,000 more electric vehicles in 2017 and an additional 70,000 by 2020.

By 2015 the country's electric vehicle market had grown to 2.5 million motorbikes and over 1,000 cars.